Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Subscriptions for the much-awaited Talabat initial public offering (IPO) will begin on November 19.
According to the prospectus issued on Monday, subscriptions for retail investors will close on November 27, while subscriptions for institutional subscribers will close on November 28. The offer price range will be announced on or before the commencement date of the subscription. The final offer price announcement will be made on November 29.
Allocation and refunds will occur for retail subscribers from December 6. The expected date of listing is December 10.
Talabat is a leading food delivery service provider in the MENA region. Founded in 2004 in Kuwait, Talabat has expanded to serve customers in the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt. It has more than 6 million active customers, more than 65,000 restaurants and other groceries and retail vendors as “partners”, and more than 119,000 active riders by the end of September, the company said.
The Abu Dhabi-headquartered company has chosen to list on the Dubai Financial Market and will offer 15% of its total shares in the IPO. The selling shareholder, Delivery Hero, a Germany-based company, will retain ownership of 85% of the shares.
The company is officially registered at the ADGM in Abu Dhabi and is subject to its regulations.
The minimum application size for retail subscribers is Dh5,000, with any additional application made in increments of Dh1,000. The minimum application size for institutional investors is Dh5,000,000. There is no maximum application size for either group.
Nearly 3.5 billion shares with a nominal value of Dh0.04 will be up for sale in the upcoming IPO.
The Berlin-based delivery business major, which acquired Talabat in 2015, would like to use IPO proceeds for “general corporate purposes and to further optimise the capital structure”, a statement issued on Sunday said.
Delivery Hero has been cementing its position in the Middle East through acquisitions. It bought Indian firm Zomato’s food delivery business in the UAE in 2019, as well as the online grocery platform InstaShop in 2020.
Noting the strong fundamentals of Talabat’s business, Mayank Sawhney, Managing Director of MaxGrowth Consulting, said: “The Talabat IPO is going to attract significant interest from investors due to the strong brand value and significant year-on-year growth in revenues and profits. There is still a lot more scope for Talabat’s business to grow significantly in the MENA region over the next few years.”
Five per cent of the offer shares will be reserved for retail shareholders, while 95% will be for institutional and high-net-worth investors.
Stuart Yeomans, CEO of Farringdon Capital Ltd, commented on the IPO, stating: “This IPO is another great success story for the UAE and adds to what has already been an exceptional year for the UAE’s capital markets.”
He noted that UAE-listed companies have been offering sound returns on investment, adding: “It’s good to see many of the new listings offering a solid dividend strategy, which will certainly ensure oversubscriptions on many listings.”
Yeomans further remarked, “It’s clear to see that DFM and ADGM are leading the way for the MENA region and many regulatory reforms have helped spur this growth.”
The company reserves the right to amend the size of the offer with the approval of the Securities and Commodities Authority (SCA) of the UAE.
The company has also detailed its dividend policy, planning a minimum dividend of approximately $100 million (Dh367.25 million) in April 2025, covering Q4 2024 financial results. It also targets two instalments totalling around $400 million (Dh1,469 million) in October 2025 and April 2026, based on 2025 results.
According to the IPO prospectus, all eligible employees will receive a minimum of 10,000 shares at the offer price. Successful retail bidders will receive a minimum of 1,000 shares.
Talabat has hired Emirates NBD Capital, J.P. Morgan Securities, and Morgan Stanley & Co International as joint global coordinators and joint book-runners.
The UAE has seen a flurry of IPOs this year. Alef Education, NMDC Energy, ADNH Catering, and Lulu Retail were successfully listed on the Abu Dhabi Securities Exchange (ADX) this year after eliciting a good response from investors. Parkin and Spinneys also tasted success by listing on the DFM this year.
